Just broken $20k per month, what I did to achieve it.

[geeknz]

This post is not to brag, but to share some insight and hopefully help others break their own ceilings in terms of income.

For me, breaking the 20k per month mark was a big deal (previously did about 13k and that was a stretch).

Here are the few key things I did to achieve it:

• Increased our prices (long overdue) -- which are now in line with some of the bigger nationwide chains.
• Expanded into two smaller satellite-towns around our main city (which slightly increased volume of calls and jobs)
• Sold more stock including new computers when people asked for them (previously we hardly bothered doing this -- particularly new computers)

In hindsight these things were darn simple and we should have done them a long time ago. I guess this is a reminder for myself and everyone else that it is often the smallest of changes that make the biggest difference.

There is a quote, I forget who said it first:
"Big doors swing on little hinges"

 

[Cambridge PC Support]

That's good going.

So is that turnover or profit? Which currency are you using?

 

[cyabro]

Go kiwis!

What are your rates if you don't mind my asking?
Would be interesting to know what others around NZ are charging.

 

[kcooke1983]

Fantastic OP. Well Done.

 

[Paul Rodgers]

That's good going.

So is that turnover or profit? Which currency are you using?

This is what I would also like to know.

 

[OldSchoolPC]

This is what I would also like to know.

+1 to this. Also, increasing your new hardware sales will drastically increase your monthly revenue, but also cost. Where as services are extremely high markup, hardware sales (except for small items) are not. So, 20,000 Gross, 20,000 NET, 20,000 gross profit? United States Dollars?

 

[Tiddle]

20k=16,364 US dollars

 

[SprinterTech-WI]

+1 to this. Also, increasing your new hardware sales will drastically increase your monthly revenue, but also cost. Where as services are extremely high markup, hardware sales (except for small items) are not. So, 20,000 Gross, 20,000 NET, 20,000 gross profit? United States Dollars?

x3 -- good months for me are $20,000 gross USD, I personally don't take a huge amount home and so I reinvest about 80 - 90% of my profits every month, mostly into inventory, and increasing equipment etc....

 

[PCX]

Yeah, I can easily see $20,000 as gross per month, but if you are making $20,000 profit, I most def want to have a sit down with you some day.

 

[Cambridge PC Support]

Can't remember who says it but, turnover is vanity, profit is sanity

 

[SprinterTech-WI]

Can't remember who says it but, turnover is vanity, profit is sanity

I like both! the books look alot better when I have 20 - 30K rolling through every month even if net profit is only 10% then 50% profit on 5K

 

[geeknz]

Apologies folks, to be fair and clear that is turnover, in New Zealand dollars.
However I increased profit by about 90% too which was no easy feat. I have had a full time technician on with me for 7 months now and it is starting to become far more worthwhile having him on. And I'm personally still not that busy so we could do a lot more even with just the two of us.

I guess the biggest aha moment was taking more notice of what my customers had been asking for which I wasn't really providing - for me that was computer sales. While not a huge markup necessarily it can still be a great backend sales opportunity for any existing customer.

For 10-15 minutes of needs analysis I can make an extra $200-300 profit. That's not a bad hourly rate. I have got a good supplier account here in New Zealand which gives us a nice margin.

 

[cyabro]

Who is your supplier here in NZ?

 

[geeknz]

Ingram and PB Tech - a combination of both. Had to push hard for a good wholesale rate. A bit of negotiation paid off that time